Saturday, December 3, 2016

Restaurant Customers are Eating Lunch at Convenience Stores

Foodservice Solutions® Grocerant Guru® Steven Johnson as the
125,000 regular readers of this blog know has repeatedly spoken at leading
industry events, posted on this blog, and has been interview about restaurant
customer migration to both the grocery sector and convenience store sector since
1991.

Recently
new data from The NPD Group found that “Convenience stores are making inroads
with consumers and stealing quick-service visits”. Now that is nothing new to
our readers. In fact we consider it the
highest form of professional flattery and a complement. Thank you for joining the choir NPD you do
great work welcome to the grocerant niche.

Food
research industry icon and NPD analyst Bonnie Riggs clearly stated “QSRs really
have to pay attention to C-stores,….They’re are making inroads and stealing visits from
QSR.” Here are some facts the new NPD report:

1.C-stores’ share of
quick-service visits rose to 10 percent in the year ended August 2016, from 9.3
percent in 2011.

2.Both Gen Z (born between
1997 and 2015) and Millennials (born between 1981 and 1996) have increased
visits to C-stores in the last five years. Millennials are now the heaviest
users of C-stores, accounting for 32 percent of visits in the year ended August
2016, from 28 percent in 2011. Gen Z are the second-heaviest users, accounting
for 23 percent of C-store visits, from just 7 percent in 2011.

3.Gen X has cut back on
visits, but is still also a big user of convenience stores, accounting for 25
percent of visits, down from 30 percent in 2011.

4.“[C-stores] have broadened
their appeal. Attracting all age groups, not totally dependent on blue-collar
workers, on gasoline, smokes and Cokes. “They offer fresh food, variety,
convenience.”

5.Price is a key factor
driving C-store visits,.. In the year ended August 2015, a visit to a convenience
store cost $2 less than a visit to a traditional quick-service outlet. Other
motivations driving growth are quality and variety of products.

6.In the year ended August
2016, 15 percent of Gen Z visits and 19 percent of Millennial visits to
C-stores were related to brand loyalty.

7.During the same period, just
10 percent of Gen Z visits and 12 percent of Millennial visits to quick-service
restaurants were related to brand loyalty.

Riggs
went on to say that Convenience stores. “It’s something new, different.” Once
again the Team at Foodservice Solutions® agrees. What our team identified, quantified, and
qualified was that the key driver of the ‘differentiation’ is the ability to
Mix and Match food products per trip and price.

Success
does leave clues and bundling meal components, and the role of price in
Foodservice Solutions® FIVE P’s of Food Marketing are clues no retailer should
over look. For product placement,
positioning, or customer relevant messaging ideation, contact: Steve@FoodserviceSolutions.uswww.FoodserviceSolutions.us